INTRODUCTION :On 27th December 2007, a Buyback Contract for development of FERDOWSI Gas Field was signed between the National Iranian Oil company (NIOC) and Malaysian SKS International Oil & Gas Co. The duration of the contract, taking into account Golshan Gas Filed, is 66 months.

FERDOWSI Gas Field is located approximately 30 KM, west of Golshan Gas Field in the Persian Gulf.

The buyback contract was endorsed by NIOC’s Board of Directors on the early days of January 2008, effective on the same date.

OBJECTIVES :The main objectives of FERDOWSI Gas Field Contract are as follows:A. Full development plan for the gas fields as per approved Master Development plan (MDP) including:

Drilling of 13 initial production wells Istallation of one offshore gas production platform Istallation of one 26-inch sub-sea pipeline for transfer of gas to the onshore facilities Istallation of one 4.5-inch sub-sea pipeline piggybacked on the 26-inch underwater pipeline for conveying MEG from the offshore pocessing unit to the production platform Istallation of onshore gas processing plant (west of Dayyer Port) and support facilities including gas/carbohydrate liquid separation unit abilization and export of gas condensates Sweetening and dehydrating of the gas piped to the onshore processing unit Production, solidification and export of sulfur, setting the dew point and gas demercaptanization

B. Achieve MDP Goals including:

Production of 500 MMscfd gas in FERDOWSI Gas field for domestic uses and production of fuel for power plants

C. Achieve the gross costs estimated for development of Ferdowsi Gas Field, for approximately EUR 2 Billion.